MUMBAI : On a recent episode of Shark Tank India, the makers of the device made a patent pitch. They stated that the gadget might prevent the deaths of thousands of Indian infants, who die each year because of inadequate availability of healthcare in rural areas. The panel of sharks, which included Aman Gupta, Peyush Bansal, Vineeta Singh, Ritesh Agarwal, and Radhika Gupta, praised them on their great objective, but they also addressed concerns about their growth model and lack of business acumen.
The founders, Pratyusha and Manoj Sanker, pitched their brand Nemo Care on Shark Tank India, and asked for Rs 1 crore in funding in exchange for 2.5% equity, valuing their company at Rs 40 crore. The founders said that they have already raised grant money of Rs 6 crore, with major players such as Google and the Bill and Melinda Gates Foundation betting on them.
Additionally, they’ve already been granted a US patent, and are now in the process of getting the US FDA’s (Food and Drug Administration) approval, which will open more doors for them.
They claimed that their product could closely monitor newborns and give information to clinics and hospitals trapped for labour. The product can benefit medical professionals in places where labor shortages don't exist, and in certain situations, it can even spot warning signs of developing illness. According to them, 80% of the up to 4 lakh newborns who are lost in India each year may be saved with prompt medical attention.
Radhika said that she still views the company as being pre-revenue, and as a principle, doesn’t invest at this stage. She came to this conclusion after the founders told the sharks that their sales in the last three years haven’t increased, and that they’re burning around Rs 15 lakh per year. Peyush said, “My concern is that you will raise the money you want thanks to the Rs 40 crore valuation you’ve already got, but the burden of this valuation that you’re carrying around, where will that take you? You’ve made such heavy commitments, and now you want to go to the US. Have you forgotten India’s 10 lakh babies?”
The founder replied, “I want US money to sustain.” Aman Gupta sided with the founders, and said that there is nothing wrong with wanting US money. “I agree with you. You can take money from whoever you want, what’s the problem?”
Peyush teamed up with Vineeta to make the founders an offer despite his concerns. The founders were keen to work with Aman, and they finally came to a deal whereby Rs 20 lakh was exchanged for 0.67% equity, and the remaining Rs 80 lakh was taken on as debt with a two-year interest rate of 10%.
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Credit- The Indian Express
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